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| PayPal investigates launch of its own stablecoin |
According to the company, PayPal is investigating the introduction of its own cryptocurrency for crypto payments, and the company confirmed this development after finding evidence of this on its iPhone app.
We are investigating a stable cryptocurrency,” Jose Fernandez da Ponte, Vice President of Crypto and Digital Currency at PayPal, said in a statement. For the future, we will work closely with the responsible supervisory authorities.
A stable cryptocurrency is a backed digital currency whose value is the value of existing coins or commodities. They are generally more stable than their scattered counterparts.
Developer Steve Moser found evidence in PayPal of the company exploring the creation of a stable cryptocurrency for the first time.
Hidden icons and images show the work on the so-called PayPal Coin. The symbol also indicates that the currency is backed by the US dollar.
A company spokesperson said the images and code for the app came from a recent internal hackathon across the company’s blockchain, crypto, and cryptocurrency divisions. This means that the final logo, name and function may be changed in generic products.
An indoor hackathon is an event where engineers work together to research and develop new products that you might not see released.
PayPal cooperates with regulators before applying
In the past few months, the company has been part of a major effort in the cryptocurrency space. New functionality has been introduced for buying and holding cryptocurrencies and the ability to pay for purchases with cash.
The Vice President of Crypto and Cryptocurrency at PayPal recently said that the company has not yet created stablecoins for payment purposes.
For payment giants to use stablecoins, he said, they must support large payments and provide security. He added: The rules, regulatory frameworks and types of permits required in this area must be clarified.
PayPal is not the first tech giant to explore offering its own currency. Meta, formerly known as Facebook, is helping develop a stablecoin called Diem.
A digital wallet that supports Deem coins is expected to be launched. However, it faced resistance from regulators and launched the Novi crypto wallet called Pax Dollar, a stablecoin.
Although in recent months Visa has enabled a stablecoin backed by US dollars to transact with the network.